16 – Information Request Re Cross-Border Employment

In cross-border employment situations, the right to tax wage income is generally tied to the location where the services are performed, not where the employer is located. This is true at the international level (i.e., when allocating between Canada and the U.S.) and at the U.S. state level (when allocating between states). As a result, where a client has worked in multiple countries or states in a single year, Unbordered asks for detailed information about the location where services were performed.

Much of this information comes from Form #7 (Location Form). However, we also need to know about your work schedule for the year, because some days (like vacation days and holidays) are excluded for allocation purposes, and other days (like weekend days you worked) are included. This form helps us collect that information and calculate your income tax in each jurisdiction correctly.

It is important to prepare this form carefully. These wage allocations are almost always audited (sometimes by multiple governments), so it is critical that you give us information you can defend on audit. Changes to wage allocations invariably affect multiple tax returns, so a mistake can mean amending not one but multiple tax returns.